| fvDailyCompSingleCF {tvmComp} | R Documentation |
Calculates Future Value of a Single Cash Flow for Daily compounding.
Description
Calculates Future Value of a Single Cash Flow for Daily compounding.
Usage
fvDailyCompSingleCF(r, n, pv)
Arguments
r |
A number. |
n |
A number. |
pv |
A number. |
Details
As described by Titman,S. et al. (2017), Time Value of Money calculations are essentially comparisons between Present Value, that is what a cash flow is worth to you today, and Future Value, that is what a cash flow will be worth in the future. In addition, this Future Value is impacted by the frequency of compounding. In most of the situations the compounding period is an year in length. However, this is not always true. For instance, when banks offer saving accounts that Compound Interest every day, month, or quarter. Depositor in this scenario should prefer more frequent compounding because more interest is earned when more is compounded more frequently. Most common compounding situation includes daily, monthly, quarterly, and yearly compounding. Based on this, method fvDailyCompSingleCF() calculates Future Value of a Single Cash Flow for daily compounding scenario. The method fvDailyCompSingleCF() gives fv when values are passed to its three arguments. Here r, is annual rate, n is number of years and pv is Present Value.
The output gives Future Value of a Single Cash Flow for daily compounding scenario, that is rounded off to two decimal places. A minus value like -4450.69 represents Outflow of the Cash. Whereas a positive value like 4450.69 represents an Inflow of the cash.
Value
Input values to three arguments r , n and pv.
Author(s)
MaheshP Kumar, maheshparamjitkumar@gmail.com
References
Titman,S., Keown,A.J., Martin,J.D. (2017). Financial Management: Principles and Applications(13th Edition). Pearson Education (US). ISBN 9780134417219, https://bookshelf.vitalsource.com/books/9780134418001.
Examples
fvDailyCompSingleCF(0.08,10,-2000)
fvDailyCompSingleCF(0.08,10,2000)